05 December 2007 20:35 [Source: ICIS news]
The American Petroleum Institute (API) urged members of Congress to vote against a combined energy bill that was patched together from separate House and Senate energy measures passed by those chambers earlier this year.
The combined bill raises fuel efficiency standards for
“We are disappointed that this bill fails to recognise government projections that
“An even greater disappointment is that this bill would likely lead to less energy production, not more,” Cavaney said.
In a letter to members of Congress, Cavaney cited the combined bill’s provision for some $21bn (€14.3bn) in taxes on oil and gas producers, including the repeal of about $13bn in tax incentives and credits for oil and gas production that were in the 2005 Energy Policy Act.
“The bill’s tax provisions take direct aim at companies’ ability to expand oil and natural gas production and refining capacity,” Cavaney said.
The final energy bill - which may be voted on by the House on Wednesday or Thursday - is expected to include a new target for a renewable fuels standard (RFS). The Senate energy bill approved earlier this year called for 36bn gal/year of biofuels production by 2022, but it is not yet certain that the Senate language will survive in the combined bill.
“The biofuels mandate in the bill will require huge volumes of a variety of advanced biofuels, betting on yet-to-be-achieved technological breakthroughs [in cellulosic ethanol production] to meet the requirements,” Cavaney said.
“If this bet goes wrong,
($1 = €0.68)
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